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Osun, Delta Fine Google, Meta For Tax Evasion
The tax authorities in Osun and Delta states have fined Google Nigeria and Meta Platforms, Inc, $150 mllion and $200 million respectively for alleged non-remittance of Withholding Tax.
The fine is specifically for the Withholding Tax allegedly deducted from content creators and entertainers in the two states from 2020 till date.
This is contained in separate letters signed by Messrs Sola Adewunmi, and Solomon Ighrakpata, Executive Chairmen, Osun and Delta States Internal Revenue Service (IRS) respectively.
The letters, also signed by Ademola Odetunde, Chief Operating Officer, LafriquePromedia Ltd., the revenue collection agent for the states, were made available to The Tide’s source in Lagos, yesterday.
According to Odetunde, LafriquePromedia is also consulting for the IRS of Plateau, which is also facing the same challenge and coming up with similar demand.
He said that the companies were issued a 14-day notice of compliance, effective July 12 and July 19 respectively, from the affected states.
He said that the companies, upon the receipt of those letters, would face the consequences for non-compliance.
Odetunde said that the states were demanding for the payment of $50 million and $200 million respectively, being assessed withholding tax deducted, but not remitted by the companies, at the rate of five per cent to the states.
He said that the revenue or payment were from digital services provided to content creators, practitioners in the entertainment and creative sector within Delta and Osun states.
“By this demands and notices for compliance, we hereby advise your companies to comply with our demands through our revenue agent within the next 14 days.
“We want to bring your attention to the fact that the concept of WHT is a form of advance payment of income tax, which is deductable at source on payment made for certain commercial transactions by Nigerian customers.
“Same must be remitted to the appropriate tax authorities – Federal, by corporate bodies, or State Internal Revenue Service, by individual, enterprises and partnership within 21 days after the end of the month the transaction was made,” he said.
According to him, the companies, as an operator of Social Media Platform within the Osun and Delta states’ digital landscape, are mandated to withhold tax in line with the provisions of the extant law.
Odetunde, who is also a legal practitioner, added that the law required non-resident companies providing digital services in Nigeria to withhold tax.
He said that this also meant that the companies were required by law to collect and remit WHT on digital services provided to customers within the Osun and Delta states’ digital landscape.
He recalled that the concept of withholding tax was introduced to curb tax leakages, gather information of commercial activities being carried out by both resident and non-resident businesses.
Withholding tax is mostly used for collecting tax on non-residents’ income in Nigeria where cross border enforcement is impracticable.
Odetunde said the procedure for implementing withholding tax for non-resident companies operating digital services within Osun and Delta states’ digital landscape included the deduction of such tax from payments for specified activities.
He said the procedure also included services provided to content creators and online practitioners within Osun and Delta states as well as remittances of the tax to the relevant tax authorities through its designated agent.
The legal practitioner also said that the submission of withholding tax schedules to the relevant tax authorities showing details of the beneficiaries such as the name and address of the recipient, was part of the procedure.
It also included the gross amount of the transaction, the amount of the tax and the percentage that had been deducted among other things.
Odetunde said: “We observed that over the years your companies willfully refused, failed and neglected to remit the withheld tax to the local tax authority for Osun and Delta states, Nigeria.
“Take further notice that, when a non-resident company deducts WHT from payment for digital services provided to customers within Osun and Delta states digital landscape.
“Without remitting the same to the local tax authorities, which is Osun and Delta States Internal Revenue Services, a criminal offence has been committed by such non-resident company.
“The law permits us to prosecute the offending non-resident companies and take necessary steps to recover the WHT.”
Odetunde warned the companies to also note that the penalty for non-compliance for companies, including non-resident companies, upon conviction, included a fine of 10 per cent of the amount not deducted or deducted but not remitted.
He said: “This shall be added thereto, plus interest at the prevailing commercial rate presently at 21 per cent, while the officers of a non-compliant corporate taxpayer may be imprisoned or fined or both, if found guilty of tax crime.
“We do hope that this polite demand notice for compliance will jolt your company to do the needful without further delay.”
According to Odetunde, the revenue agent has been writing to the companies since Oct. 13, 2023 in respect of the matter, to no avail.
News
RSG Cancels ?134BN Secretariat Contract, Orders Refund Of ?20BN Mobilisation … Revalidates Four Projects
The Rivers State Executive Council has revoked the ?134bn contract awarded to the China Civil Engineering Construction Corporation (CCECC) for the renovation, retrofitting, and furnishing of the Rivers State Secretariat Complex by the State of Emergency Administration.
The council directed the immediate refund of the ?20bn mobilization fee already paid to the contractor.
Relatedly, the Council also approved the revalidation of the bidding processes for four contracts, consisting of the renovation of the State Secretariat Complex, construction of reinforced concrete shoreline protection and reclamation works in several riverine communities of Opobo/Nkoro, and Ogba/Egbema/Ndoni Local Government Areas. The projects earlier advertised for which bid documents were cancelled by the Emergency Administration and fees returned to the companies that had earlier purchased them.
The decisions were reached during the State Executive Council meeting held on Thursday at the Government House, Port Harcourt, and presided over by Governor Siminalayi Fubara.
Briefing newsmen, the Permanent Secretary, Ministry of Works, Dr. Austin Ezekiel-Hart explained that the contracts had been awarded in a hasty manner without following due process. He said the council, therefore, approved the revalidation of the bidding process for all four contracts that were earlier advertised in national dailies on February 19, 2025.
With the revalidation process now on, Dr. Ezekiel-Hart stated that a fresh bidding will be advertised in newspapers for competent and experienced contractors to prequalify and submit both technical and commercial bids.
He listed the projects to include, “The construction of 4.8km reinforced concrete shoreline protection and reclamation of Queenstown, Epellema, Oloma, and Minima communities in Opobo/Nkoro Local Government Area in Rivers State. The construction of 2.5km shoreline protection and reclamation in Ndoni-Onukwu, Isikwu, and Aziazagi communities in Ogba-Egbema-Ndoni Local Government Area.
“The construction of 2.5km shoreline protection and reclamation in Utuechi, Obiofu, Isala, Ani-Eze, and Odugri communities in Ogba-Egbema-Ndoni Local Government Area. The renovation, retrofitting and furnishing of the Rivers State Secretariat Complex,” he added.
Also speaking, the Permanent Secretary, Ministry of Education, Dr. Azibaolanari Uzoma-Nwogu, announced that the council approved the constitution of a committee to develop a proposal for the creation of Computer-Based Test (CBT) Centres and ICT Laboratories across the three senatorial districts of the state.
She explained that the initiative is in line with the Federal Government’s directive that beginning in 2026, all examinations conducted by the West African Examinations Council (WAEC) and the National Examinations Council (NECO) will be computer-based.
The committee, chaired by the Deputy Governor, has the Secretary to the State Government, Permanent Secretaries from the Ministries of Education, Works, Information and Communications and Commissioner for Energy as members. Dr. Uzoma-Nwogu said the move will prepare Rivers youths for a digital future and improve the quality of education across the state.
On issues of employment, the Commissioner for Employment Generation and Economic Empowerment, Dr. Chisom Gbali, said the council reviewed ongoing efforts to create jobs for Rivers youths. He disclosed that his ministry has been directed to develop a framework for job creation and economic empowerment, noting that the government is determined to open up more opportunities for the young population.
“We want to assure Rivers youths that there will be a rising tide of employment and steady waves of economic empowerment,” Dr. Gbali said. “We know our Governor, when he makes a promise, he ensures it is fulfilled.”
On his part, the Permanent Secretary, Ministry of Information and Communications, Dr. Honour Sirawoo, said council also deliberated extensively on the recent flash floods experienced in some parts of the state. He said the council directed immediate remedial intervention to address the situation, and cautioned residents against the indiscriminate disposal of waste into drainage channels and building on waterways, which worsens flooding.
Dr. Sirawoo further noted that Governor Fubara remains deeply committed to the development of Rivers State and determined to accelerate the pace of governance despite time lost. He added that the administration’s renewed focus and energy will soon place Rivers State firmly back on the path of sustainable growth and progress.
Rivers State Governor, Sir Siminalayi Fubara, has reaffirmed his administration’s commitment to the completion of the 62.650km Port Harcourt Ring Road project, despite the setbacks that have slowed its progress.
The Governor gave the assurance during an on-site inspection tour of the project on Monday, where he emphasised that the state government remains resolute in its determination to deliver the massive infrastructure for public use.
Addressing journalists at the Eneka Flyover axis of the project, Governor Fubara stated that his visit was to verify the level of compliance and commitment shown by the construction firm, Julius Berger Nigeria Plc.
Governor Fubara noted that discussions with the contractor had been ongoing to ensure that work resumes at full capacity after a period of financial challenges that affected the project’s continuity.
“You are aware that this project was, I won’t say abandoned, but somehow, for lack of funds, the contractor withdrew from the site. We have been discussing with them, and they gave me their word that although we have not finished all the discussions, they have already moved back to site, and I’m here to confirm that.”
The Governor described the Port Harcourt Ring Road project, which traverses six local government areas, as one of the most significant infrastructure undertakings in the state’s history, noting that its completion would not only ease traffic congestion in the capital city but also stimulate economic activities across multiple local government areas.
Governor Fubara reiterated his administration’s resolve to continue prioritising infrastructure development as a foundation for economic growth and social progress.
“I want to make this promise to our good people of Rivers State,” the Governor declared. “This project that we started, by the special grace of God, we are going to complete it. We owe our people a responsibility to deliver on our commitments, and this project will not be an exception,” he added.
The Governor of Rivers State, Sir Siminalayi Fubara, has charged the 2025 Batch B, Stream II National Youth Service Corps (NYSC) members deployed to the State, to use the NYSC skill acquisition training programme to build capacity.
Governor Fubara gave the charge on Tuesday when he declared closed, the 2025 Batch B Stream II orientation exercise in the State.
Represented by the newly sworn-in Secretary to the State Government and Chairman NYSC State Governing Board, Hon. Benibo Anabraba, Governor Fubara enjoined the Corps members to embrace skill acquisition wholeheartedly in order to elevate themselves as wealth creators and employers of labour.
“Take Rivers State as your home. Be assured of the warmth, hospitality, and accommodating disposition of the good of our people at all times.
“Take the skill acquisition and entrepreneurship development post camp training very seriously and equip yourselves with the capacity to compete favourably in the nation’s huge economic space,” he stressed.
The Governor called on the Corps members to see their mobilization into the NYSC Scheme as a fundamental way to provide humanitarian services.
“Remember that you owe it to yourself, family, and the nation, the responsibility to serve selflessly and honourably,” he admonished.
In his farewell address, the State Coordinator of NYSC, Mr. Moses Oleghe appealed to the Corps members to use the opportunity of the service year to discover their true purpose.
He further encouraged them to embody selfless service and empathy in serving the people.
The colourful ceremony witnessed a vibrant parade.